HDFC Bank Q3 result: Profit inches up by 2% YoY, net NPAs rise; 8 key highlights

HDFC Bank Q3 result: Private sector lender HDFC Bank on Wednesday, January 22, reported a 2.2 per cent year-on-year (YoY) rise in its standalone net profit to ₹16,735.50 crore for the December quarter of the current financial year (Q3FY25). In the same quarter last year, the company's profit was ₹16,372.54 crore.

The banking heavyweight's total standalone income for the quarter under review stood at ₹87,460.44 crore, up 7 per cent YoY against ₹81,719.65 crore.

HDFC Bank Q3 result key highlights

Let's take a look at eight key highlights of HDFC Bank's Q3 earnings:

1. Revenue and profit: The bank said its net revenue rose 6.3 per cent to ₹42,110 crore in Q3FY25 from ₹39,610 crore in the same quarter last year. Profit after tax (PAT) for the quarter under review grew by 2 per cent.

2. Gross NPA: According to the exchange filing, the bank's gross NPA for the quarter stood at ₹36,018.58 crore, up 16.15 per cent YoY from ₹31,011.67 crore in Q3FY4. The percentage of gross NPAs to gross advances grew to 1.42 per cent from 1.26 per cent in the corresponding quarter of the last financial year.

3. Net NPA: Net NPA during the quarter jumped by 51.2 per cent YoY to ₹11,587.54 crore against ₹7,664.10 crore in the same quarter last year. The percentage of net NPAs to net advances rose to 0.46 per cent from 0.31 per cent year over year.

4. NII grows 8 per cent: According to the bank's exchange filing, HDFC Bank's net interest income (NII), which is interest earned minus interest paid, for the quarter rose 7.7 per cent to ₹30,650 crore from ₹28,470 crore year-on-year. 

"Core net interest margin (NIM) was at 3.43 per cent on total assets and 3.62 per cent based on interest-earning assets," HDFC Bank said.

5. Operating expenses rise: The bank's operating expenses increased 7.2 per cent YoY to ₹17,110 crore from ₹15,960 crore in last year's same quarter.

6. Provisions and contingencies: Provisions and contingencies for the quarter stood at ₹3,150 crore from ₹4,220 crore year-on-year.

7. Deposits, CASA improve: HDFC Bank said its average deposits grew nearly 16 per cent YoY to ₹24,52,800 crore during Q3FY25, while average CASA (Current Account and Savings Account) deposits grew 6 per cent YoY to ₹81,7600 crore.

8. Advances: The bank's gross advances during the quarter increased 3 per cent YoY to ₹25,42,600 crore. Retail loans grew by 10 per cent, and commercial and rural banking loans grew by 11.6 per cent. However, corporate and other wholesale loans declined by 10.4 per cent, the HDFC Bank said.

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